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Trading at gaming and toy retailer GameStop was cooler to end the week after some cryptic social media activity set the stock ablaze on Thursday.
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The company will announce its quarterly financial results on Tuesday afternoon.
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The height of meme stocks isn’t widely discussed on Wall Street. But investors have pushed the shares higher this year and since the last reported quarterly results.
GameStop’s next quarterly results will be released next week. But as is often the case with the retailer, the numbers it reports are not necessarily the most important event.
GameStop’s (GME) shares were relatively quiet on Friday. Shares closed higher on substantially lower volume than a day earlier, when they emerged as a cryptic tweet from meme stock expert Keith “Roaring Kitty” Gill, apparently inspiring some investors to buy in.
Traders sent the shares as much as 14% higher intraday on high volume Thursday, recalling the wild trading Gill’s social media activity inspired in the stock earlier this year.
Perhaps investors were once again focusing on Tuesday afternoon’s expected financial results. Some meme stock watchers, meanwhile, appear to have turned their attention to AMC Entertainment (AMC), whose shares ended the day down about 9%.)
GameStop, a video game and collectibles seller that has faced an uphill battle amid an industry-wide shift to digital commerce, is not widely covered by Wall Street. Wedbush’s Michael Pachter is the only analyst covered by Visible Alpha, and in a note on Friday he reiterated an “underperform” rating and a $10 price target, valuing the company as little value after cash.
“The company’s planned return to growth faces insurmountable barriers,” he wrote.
Investors today generally continue to think differently. The stock closed around $29 on Friday and is up more than 60% this year, albeit down from 2024 highs. Occasional business updates (Since reporting second-quarter earnings results in September, GameStop has added a board member, announced a trading card partnership and raised money) have helped maintain interest, with shares rising in that time.
However, the action of the past week is another reminder that much of the action surrounding GameStop stock is driven by external factors.
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